WIRED's biggest stories, delivered to your inbox

Exasperated eBay Sellers Threaten to Strike

EBay may have opened a Pandora’s box last week when it announced plans to restructure fees for sellers. A small army of furious eBay merchants are threatening to close their shops, some are pondering legal action, and others are organizing a strike for Feb. 18 through Feb. 25. Although the threats are serious, this isn’t the first time eBay sellers have tried to organize a strike, and past attempts haven’t been successful.

"This happens every year when eBay changes its fees," says one former eBay employee. "You hear from a small percentage of the seller community with very pointed or colorful remarks. But they maybe represent less than a half a percent of the seller community. . . This is not unprecedented and [past strike attempts] have been largely ineffective."

The trouble started last week when the company lowered upfront listing fees and increased closing costs in an attempt to encourage sellers to list more items. The fee changes were deeply troubling to many sellers
— many of whom say it amounts to a rate hike — but the feedback system changes have proven even more difficult for sellers to swallow. When the changes take effect on Feb. 20, eBay sellers cannot leave a negative or neutral rating on buyers. (EBay says the changes were made because the system was being abused by sellers who left unwarranted retaliatory feedback on buyers.)

Although thousands of eBay sellers have cried foul, they don’t have clear course of action. EBay sellers have planned numerous strikes in the past, going back at least to 2004, but none have amounted to much.

"I think a boycott is a wonderful idea, but I don’t know if it will accomplish anything. Ebay is an 800-pound gorilla and they know it,"
says Phillip, a longtime eBay seller. "They’re too proud and egotistical to make any changes now.

Some eBay sellers, though, are taking it a step further. Tom, a 9-year veteran eBay seller decided to close his shop, effective Feb. 14 (the end of his billing cycle), and is considering moving his goods to a couple alternative sites.

"My decision has nothing to do with the rate change and everything to do with the reputation I’ve built on eBay," Tom says. "The feedback is the only carrot a seller has to make sure a person buying from them is fair. Now
I’ve got virtually no way to protect myself against negative feedback . . . As for the weight or gravity of this situation, it’s a major life decision — right up there with getting married, picking a school and deciding whether to have children."